Eurobanks operate on a narrower spread in comparison to US banks), but still make profit because:

Question

Quizplus · Accepted Answer

Eurobanks have no reserve requirements, so they can lend a larger percentage of their deposits. Additionally, they have very little or no regulatory expense and low operating expenses. All of these factors contribute to the Eurobanks' ability to make a profit despite operating on a narrower spread compared to US banks.

Eurobanks Operate on a Narrower Spread in Comparison to US